Markets - Fixed Income

LONDON: British government bond prices fell sharply on Tuesday and underperformed against German debt after the weakest gilt auction demand since June 2013. Gilt yields jumped after investors offered bids worth only 1.35 times the amount on offer at an auction of 3.5 billion pounds ($5.38 billion) of the benchmark five-year gilt - the weakest demand since June 20 2013. "It's pretty disappointing. The market was anticipating a pretty comfortable reception," RIA Capital fixed income strategist, Nick Stamenkovic, said. "But investors clearly aren't finding that part of the curve attractive right now," he said. The five-year yield rose almost 2 basis points (bps)immediately after the auction result, and by 1156 GMT was up 5 bps on the day at 1.451 percent, hitting its highest since Dec. 29. Yields rose across all maturities, with 10-year yields rising to their highest since Feb. 20 at 1.839 percent. Stamenkovic said a stronger-than-expected survey ...

HONG KONG: TMB Bank has issued Thailand's first Dim Sum bond, in an offering that comes amid one of the lowest renminbi-US dollar exchange rates since 2012.The three-year Reg S senior unsecured bonds priced to yield 5.5 percent to raise Rmb600m (US$96m). The notes were trading slightly above par in the secondary market. The lender garnered an order book in excess of Rmb900m from 48 accounts.Dim Sum syndicate bankers said they hoped the milestone bond ...

NEW YORK: US Treasury yields rose on Monday after data showed that personal income rose in January, reducing some fears that the US economic growth is slowing.Personal income rose by 0.3 percent in January though personal consumption fell by 0.2 percent, the US Commerce Department said.Some economists had expected the number would be dragged down by a drop in medical care costs."There were some concerns that weaker medical readings would pass through to weaker PCE ...

SINGAPORE: The retreating Australian dollar and the resumption of monetary easing have yet to dampen offshore demand for Kangaroo bonds. Japanese investors, in particular, are turning to Australian dollar debt in the hunt for yield.The elevated international bid has contributed to a sharp increase in Kangaroo offerings from sovereign, supranational and agency issuers, with IFC, Rentenbank and Kommunalbanken among those in the market again last week.So far this year, SSA issuers have raised A$8.6bn (US$6.7bn), ...

LONDON: The United Mexican States has launched a 2.5bn dual tranche 2024 and 2045 bond issue, according to a lead. The deal is split equally between a 1.25bn 2024 note that will price at mid-swaps plus 110bp, and a 1.25bn bond that will price at mid-swaps plus 190bp. Mexico began marketing the 2024 note at mid-swaps plus 135bp area today, before revising guidance to 125bp area. The longer tranche was offered to investors at 205bp ...

LONDON: British government bond prices hit their highest level in a week on Wednesday, extending a rally fuelled by Federal Reserve chair Janet Yellen's suggestion that the central bank was in no rush to raise interest rates. The 10-year gilt yield reached a low of 1.688 percent, its lowest level since last Wednesday, and at 1540 GMT was down 6 basis points on the day at 1.70 percent. Thirty-year gilt yields fell to a two-week ...

KAMPALA: Yields on Uganda's new two-year and re-opened 15-year Treasury bonds rose at Wednesday's auction in which a total of 180 billion shillings ($62.61 million) worth of debt was on offer.The weighted average yield on the 2-year bond rose to 16.684 percent from 16.175 percent at their last sale on Jan. 28.The 15-year bond rates rose to 17.407 percent from 15.946 percent when the notes were last sold on December 3.The rise on the two ...